Meadowbrook Insurance Group Earnings: Everything You Must Know Now

Meadowbrook Insurance Group Inc. (NYSE:MIG) missed Wall Street’s EPS expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.33%.

Meadowbrook Insurance Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $0.00 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Rose 33.42% to $299.88 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Meadowbrook Insurance Group Inc. reported adjusted EPS of $0.00. By that measure, the company missed the mean analyst estimate of $0.11. It beat the average revenue estimate of $243.8 million.

Quoting Management: Robert S. Cubbin, President and Chief Executive officer, stated: “We are committed to our shareholders, partners, agents, customers, and employees to solidify our A.M. Best rating. We have made progress in enhancing our statutory surplus and reducing our required capital by harvesting $52.1 million of gains embedded in our investment portfolio, entering into a quota share reinsurance agreement and terminating underperforming business. With these actions, our statutory surplus has increased by $79.0 million in the last quarter and our net premium leverage ratio decreased from 2.5 to 1.0 to 1.9 to 1.0. We are also pleased that our loss reserves are stabilizing and that rate increases continue to outpace loss trends.”

Key Stats (on next page)…

Revenue increased 22.14% from $245.53 million in the previous quarter. EPS increased to $0.00 in the quarter versus EPS of $-0.55 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.2 to a profit $0.18. For the current year, the average estimate has moved down from a loss of $0.41 to a loss of $0.46 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)